Ethereum whales currently hold 57% of the supply - what does it mean for ETH?

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Ethereum [ETH] whales are increasingly dominating the network, with 104 wallets holding over 100,000 ETH, accounting for more than 57% of the total supply.

This significant shift in the distribution of Ethereum has raised important questions about its future, especially concerning market control and price trends. As these whales continue to accumulate, their growing dominance indicates a strong bullish sentiment.

However, with such a concentrated holding, how will this affect Ethereum's future price movements?

Whale accumulation and long-term holding: a bullish signal or a bearish trap?

With a significant rebound in Ethereum's price, whale accumulation has also strengthened, reflected in the increasing volume of whale transactions exceeding $100,000 and $1 million.

These large investors are often classified as long-term holders (LTH), acting as a stabilizing force during volatility cycles, reducing supply shocks when market sentiment turns bearish.

Their strategy of accumulating during downturns and holding through uncertainty aligns with Ethereum's upward price trajectory by the end of 2024.

However, this concentration raises a key question: is this a bullish signal or a bear market trap? While the enhanced dominance of whales suggests sustained confidence and bullish momentum, it also amplifies downside risks.

The exhaustion of coordinated selling or buying pressure could trigger a sharp reversal, highlighting the fragile balance between accumulation-driven optimism and potential liquidity-driven adjustments.

What’s next for ETH?

The whale-driven rally in Ethereum has pushed its price above $4,000, with strong buying volume enhancing bullish sentiment.

The RSI is at 64.61, indicating that ETH is still below the overbought territory, suggesting further upside potential. OBV continues to rise, clearly indicating that demand is driving the upward trend.

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